What are some factors that influence future gas prices?

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Some factors that influence future gas prices are political unrest, weather, exchange value of the dollar, OPEC and government legislation. Gas prices are extremely volatile because many several factors can cause the prices to decrease or increase.

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Political unrest influences future gas prices because buyers believe that gas exports will be affected, which in turn drives prices higher. Weather affects future gas prices because more gasoline is used in the summer since individuals are not inhibited by bad road conditions. Extreme weather conditions can also disrupt the gasoline supply and drive oil prices higher. The exchange value of the dollar affects gas prices because oil is traded and sold in US dollars, so the weakening of the dollar causes oil demand and prices to increase

Government legislation can also affect the price of future gas prices because most oil reserves are controlled by government sponsored companies. Hence some countries can demand higher taxes on gas exports, and governments can also raise taxes against specific countries. The Organization of the Petroleum Exporting Countries (OPEC) can influence future gas prices because the organization is comprised of countries that control 40 percent of the world's oil production. Therefore, by decreasing and increasing production, OPEC can affect future gas prices.